Ritchie Bros. reports strong first quarter
By Andrew Macklin
May 7, 2015 – Ritchie Bros. Auctioneers Incorporated reports results for the three months ended March 31, 2015. During the quarter, the Company generated $115.6 million of revenue, a 17 per cent increase compared to revenue of $98.6 million in the first quarter last year, and net earnings of $23.6 million, an increase of 65 per cent compared to net earnings of $14.3 million in the first quarter last year. Diluted earnings per share were $0.22, a 65 per cent increase compared to $0.13 in the same quarter last year.
“I am very pleased with our team’s performance during the first quarter, with strong year-on-year growth in revenue, earnings, operating free cash flow and return on net assets; and am especially encouraged by our strong results in Canada and the U.S., our two priority markets. The 12.1 per cent revenue rate we achieved during the quarter was supported by the excellent performance of our underwritten contracts,” said Ravi Saligram, chief executive officer. “It is clear that our team is laser-focused on executing our new strategy and demonstrating the value of our services to our customers. This momentum has continued to build in the second quarter, as evidenced by the April Edmonton auction, which generated the most revenue for a single auction in Ritchie Bros. history.”
Gross Auction Proceeds (GAP) were $955.6 million for the first quarter of 2015, a quarterly record and a 12 per cent increase compared to the first quarter of 2014. EquipmentOne, the Company’s online equipment marketplace, contributed $21.8 million of gross transaction value to GAP in the first quarter of 2015 compared to $18.3 million in the first quarter of 2014. GAP for the first quarter of 2015 would have been $52.9 million higher, or an additional six per cent increase, if foreign exchange rates had remained consistent with those in the same period last year.
Revenue grew 17 per cent during the first quarter of 2015 to $115.6 million, compared to $98.6 million in the first quarter of 2014, as a result of the record GAP and higher revenue rate achieved in the first quarter this year. Revenue would have been $6.7 million higher, or an additional six per cent increase, if foreign exchange rates had remained consistent with those in the same period last year.